ESC Storm Video Inspection Program-PUBLISHED · Option 4: Base case & 100 mile accelerated...
Transcript of ESC Storm Video Inspection Program-PUBLISHED · Option 4: Base case & 100 mile accelerated...
6/8/2018
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2019-20 STORM & SURFACE WATERCONDITION ASSESSMENT
PROGRAM OPTIONS
Environmental Services Commission
June 7, 2018
Presentation Outline
• Purpose
• Background
• Problems & Needs
• Business Case Options Developed
• Comparison of Options
• Key Takeaways
• Digital Side Scanning Camera
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Purpose
Evaluate service level options for a stormdrainage pipe video inspection programwith the goal of selecting the optimalprogram that manages costs, benefits andrisks to the Utility and its rate payers.
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Background• Existing condition assessment program covers 7-10
miles per year.
• In 2015, CIP work was started to examine 150 miles
• 100 miles completed so far – 592 repair work ordersaveraging 6.2 defects per mile.
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Age and Mileage Distribution of Stormwater Pipe System
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Problems & Needs
• 270 miles of the stormsystem have never beenvideo inspected
• Approximately 16emergency repairs annually
• 1/3rd of the system hasunknown attribute data
• Stormwater lacks dedicatedstaff for video inspection
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Options StudiedBase Service Level: Contracted inspection – 60 year inspection cycle
Option 1: Increased contracted inspection - 30 year inspection cycle
Option 2: In-house inspection w/New Staff - 20 year inspection cycle
Option 3: Contracted inspection - 20 year inspection cycle
Option 4: Base case & 100 mile accelerated contracted inspection
Option 5: CAMERA UPGRADE In-house inspection 20 year cycle
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Option Miles of Pipe
Inspected Annually
Miles of Pipe
Inspected through
3-year (2019-2021)
accelerated
Program
Internal Staff vs.
External Vendor
System Inspection
Cycle
Base Case 7-10 NA External Vendor 60 years
1 13.8 NA External Vendor 30 years
2 20.7 NA Internal Staff 20 years
3 20.7 NA External Vendor 20 years
4 9 100 External Vendor 40+ years
5 20.7 NA Internal Staff 20 years
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Base Service Level
• Contracted video inspection of 7-10 miles a year
• Primarily ahead of Transportation overlay work
• Some investigative capacity
• Existing staff manage the contract
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Option Miles of Pipe
Inspected Annually
Miles of Pipe
Inspected through
3-year (2019-2021)
accelerated
Program
Internal Staff vs.
External Vendor
System Inspection
Cycle
Base Case 7-10 NA External Vendor 60 years
1 13.8 NA External Vendor 30 years
2 20.7 NA Internal Staff 20 years
3 20.7 NA External Vendor 20 years
4 9 100 External Vendor 40+ years
5 20.7 NA Internal Staff 20 years
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Option 1: Increased contractedinspection - 30 year cycle
• Increase contract inspection to 14 miles a year
• 50% focused on Transportation overlay work; 50% focused onprogrammatic inspection
• Allows for additional investigative work
• Existing staff will manage the contract
Option Miles of Pipe
Inspected Annually
Miles of Pipe
Inspected through
3-year (2019-2021)
accelerated
Program
Internal Staff vs.
External Vendor
System Inspection
Cycle
Base Case 7-10 NA External Vendor 60 years
1 13.8 NA External Vendor 30 years
2 20.7 NA Internal Staff 20 years
3 20.7 NA External Vendor 20 years
4 9 100 External Vendor 40+ years
5 20.7 NA Internal Staff 20 years
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Option 2: In-house inspection w/NewStaff - 20 year cycle
• In-house inspection of 20 miles annually• Focused on Transportation overlay work & additional 10 miles of
pipe inspection• Requires one new FTE to operate the camera & manage the
program• Requires one additional seasonal staff to assist
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Option Miles of Pipe
Inspected Annually
Miles of Pipe
Inspected through
3-year (2019-2021)
accelerated
Program
Internal Staff vs.
External Vendor
System Inspection
Cycle
Base Case 7-10 NA External Vendor 60 years
1 13.8 NA External Vendor 30 years
2 20.7 NA Internal Staff 20 years
3 20.7 NA External Vendor 20 years
4 9 100 External Vendor 40+ years
5 20.7 NA Internal Staff 20 years
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Option 3: Contracted inspection -20 year cycle• Increase contracted inspection to 20 miles a year
• Focused on Transportation overlay work & additional 10+ milesof additional pipe inspection
• Allows for additional investigative work
• Existing staff will manage the contract
Option Miles of Pipe
Inspected Annually
Miles of Pipe
Inspected through
3-year (2019-2021)
accelerated
Program
Internal Staff vs.
External Vendor
System Inspection
Cycle
Base Case 7-10 NA External Vendor 60 years
1 13.8 NA External Vendor 30 years
2 20.7 NA Internal Staff 20 years
3 20.7 NA External Vendor 20 years
4 9 100 External Vendor 40+ years
5 20.7 NA Internal Staff 20 years
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Option 4: Base case + 100 mileaccelerated contracted inspection
• Establishes a CIP project for contracted video inspection of 100miles over two years
• Reverts back to base case after 100 mile accelerated push iscompleted
• Requires one additional temporary staff to manage the programfor 2 Years
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Option Miles of Pipe
Inspected Annually
Miles of Pipe
Inspected through
3-year (2019-2021)
accelerated
Program
Internal Staff vs.
External Vendor
System Inspection
Cycle
Base Case 7-10 NA External Vendor 60 years
1 13.8 NA External Vendor 30 years
2 20.7 NA Internal Staff 20 years
3 20.7 NA External Vendor 20 years
4 9 100 External Vendor 40+ years
5 20.7 NA Internal Staff 20 years
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Option 5: CAMERA UPGRADE In-house inspection 20 year cycle• In-house inspection of 20 miles a year
• Utilizes new camera technologies that allow for faster videoreview
• No additional FTE’s
• Requires one seasonal staff
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Business Case Assumptions
• Contracted cost per foot for cleaning and inspectiondecreases as the footage (miles of pipe) increases.
• Program benefits are calculated by the anticipatednumber of emergency repairs avoided.
• Failure costs avoided are based on the cost to performemergency repairs and include other social costs (trafficimpacts).
• 10 Year life cycle NPV assumed discount rate of 2.34%
• Used inspection data and work history to inform rate ofcritical repairs identified in the storm system
• Benefits of performing inspection ahead of Transportationoverlay are not included in the analysis – uniform benefitsacross all options
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Financial Comparison of Options
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10-year Net Present Value
Base Case
Contract
Inspection
60 Year
Inspection
Cycle
Option 1
Contract
Inspection
30 Year
Inspection
Cycle
Option 2
In-House
Inspection
20 Year
Inspection
Cycle
(Conventional
Camera)
Option 3
Contract
Inspection
20 Year
Inspection
Cycle
Option 4
Base Case
and
100 Miles
Inspection
2019-21
Option 5
In-House
Inspection
20 Year
Inspection Cycle
(New Camera)
10-year PV
Cost Only -$1,538,000 -$3,033,000 -$3,744,000 -$4,095,000 -$3,278,000 -$2,857,000
10-year PV
Benefits Only $1,403,000 $2,766,000 $4,149,000 $4,149,000 $3,557,000 $4,149,000
10-year NPV -$135,000 -$267,000 $405,000 $54,000 $279,000 $1,292,000
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Financial Comparison of Options
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10-year Net Present Value
Option 1
Contract
Inspection
30 Year
Inspection
Cycle
Option 2
In-House
Inspection
20 Year
Inspection
Cycle
(Conventional
Camera)
Option 3
Contract
Inspection
20 Year
Inspection
Cycle
Option 4
Base Case
and
100 Miles
Inspection
2019-21
Option 5
In-House
Inspection
20 Year
Inspection Cycle
(New Camera)
10-year PV
Cost Only -$1,538,000 -$3,033,000 -$3,744,000 -$4,095,000 -$3,278,000 -$2,857,000
10-year PV
Benefits Only $1,403,000 $2,766,000 $4,149,000 $4,149,000 $3,557,000 $4,149,000
10-year NPV -$135,000 -$267,000 $405,000 $54,000 $279,000 $1,292,000
Key Takeaways from Analysis
•Option 5 - Investing in new cameratechnology has the highest benefit (NPV)
•Establishes a reasonable conditionassessment schedule (20 years)
•Minimal increase in staffing (one seasonalstaff to assist)
•Provides additional resource to supportcorrective maintenance repairs
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2019-2020 Budget Impacts
2019 2020
Proposed Program $229,136 $235,099
Base Case 140.23 PA $157,386 $161,271
Option 5 140.23DA $71,750 $73,828
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Digital Side Scanning Camera
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Benefits vs a traditional video camera:
• No need for stopping to code pipe defects increasesproductivity/coding back in the office using larger monitors– less traffic impacts/coding is a one person job
• 360 degree viewable area for footage review improvesassessment and removes subjectivity
• Picture stitching/flat view display allows for faster reviewby O&M/Engineering; one stop shop for Engineers
• No moving parts in the camera – fewer breakdowns
https://www.youtube.com/watch?v=mHAvH_o6uME
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Questions?
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6/8/2018
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Midlakes Pump Station Cost Update(Sewer CIP Project #S-61)
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Adopted Proposed
2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
2017-23 Sp. Plan (000s) $302 $0 $0 $0 $0 $0 $0 $302
2019-25 Sp. Plan (000s) $2,819$3,300
$11 $11 $11 $11 $11 $0 $2,874$3,355
All figures inflated to year of construction
• Pump station siting and designcomplexities
• Mitigation of construction risks relatedto artesian aquifer and potential sitesettlement
• Increased design budget for addedstructural design
• Increased construction budget to reflectupdated construction cost estimate andpreparation of a more complex operatingmanual
• Construction: Jan 2019 – Dec 2020
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City of Bellevue
Utilities Department2019-2020 Budget Proposals
June 7, 2018
Environmental Services Commission
Agenda
2019 – 2025 CIP Budget Review – January – May
2019-2020 Operating Budget Review – June 7
Rate Review – June 21
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2019-2020
Budget
6/8/2018
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Budget Development Process
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2019-2020
Budget
Policies
City & State Codes
Regulatory Constraints
Contracts/Agreements
Services - Mandatory
Services – Optional
Service LevelsEffective/Efficient
Delivery
Operating & CapitalBudgets
Revenue Requirement Rate-Making Policies
Rates
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2019-2020
Budget Early Outlook Forecast – March 2018Typical Residential Combined Water, Sewer, & StormUtility Monthly Bill Rate Drivers
6/8/2018
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Budget Priorities
• Sustainable high quality utility services• Responsible management of infrastructure assets• Long-term financial sustainability
• Certainty and predictability of rates
Goal: Maintain services with minimal new requests
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2019-2020
Budget
2019-2020 OperatingBudget Highlights
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2019-2020
Budget
6/8/2018
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Proposed 2019-2020 Utilities Budget
LocalOperations
$57.0M147.6 FTE/LTE
CIP Support$95.1M
34.9 FTE/LTE
Taxes & SupportServices$47.7M
WaterSupply/RCFCs
$47.3M0.5 FTE/LTE
WastewaterTreatment
$69.1M
$316.2M, 183.0 FTE/LTE
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52%Financial Obligations:Taxes / Support ServicesDrinking Water SupplyRCFC PaymentsWastewater Treatment
30%Capital Related:Transfers to CIP / R&RCIP Design and Management
18%Local Operations:Operations & MaintenanceCustomer Service/OutreachEngineering System PlanningDevelopment ServicesSupport Systems/AssetsManagement/Regulatory
Excludes operating reserves
2019-2020
Budget
2019-2020 New Requests
Maintain Current Service Levels
• Coal Creek Utility District (CCUD) Reservoir Coating ($750K)
• Maintain Customer Service ($37K/yr, 0.25FTE)
Service Enhancement
• Storm video inspection program ($71K/yr)
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2019-2020
Budget
6/8/2018
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Implementation of Previously Approved AMIProject
Fully Funded by CIP
• AMI Implementation Temporary Staffing
• 2 Field support
• 2 customer service
• 2 GIS mapping
Fully Funded by Existing Staffing Budget
• Meter Reading Temporary Staffing
• 2 meter readers
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2019-2020
Budget
2019-2020 OperatingProposals Review
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2019-2020
Budget
6/8/2018
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Capital Related Operating Proposals
Capital ProjectDelivery$9.2M
28.9 FTE/LTE
Transfer to CIP$55.7M
Transfer to R&R$29.2M
AMIImplementation
$1.0M6.0 FTE/LTE
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• $3.5B system infrastructure
• 1,700 miles of pipes
• 24 water reservoirs
• 68 pump stations
• 19 miles of submerged sewerlakelines
• Delivery of 2019-2020 CIP
• Aging infrastructure
• Capacity for growth
• Environmental preservation
• Customer enhancement
$95.1M, 34.9 FTE/LTE
2019-2020
Budget
Financial Obligations- Wholesale, RCFC, Taxes
Interfunds$17.9M
Water Supply Purchase &Sewerage Disposal
$112.4M0.5 FTE/LTE
RCFCs$4.0M
Taxes &Franchise Fees
$29.8M
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• Contractual and legal obligations
• Water supply contract withCascade Water Alliance
• Wastewater contract with KingCounty
• State & local taxes/franchise fees
• Support services - rent, IT, HR, etc.
$164.1M, 0.5 FTE/LTE
2019-2020
Budget
6/8/2018
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Local Operations
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2019-2020
Budget
Customer Service / Outreach
Rate Relief$1.5M
1.0 FTE/LTE
Solid WasteManagement
$2.0M3.3 FTE/LTE
Surface WaterPollution
Prevention$0.8M
1.5 FTE/LTE
Water Conservation$0.2M
0.2 FTE/LTE
Customer Service &Billing$3.4M
8.8 FTE/LTE
Meter Reading$1.3M
9.0 FTE/LTE
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• 38,000 customer accounts
• 20,000 meter reads monthly
• 5,000 bills weekly
• 125 customer calls daily
• 4,500 move requests yearly
• Rate relief for 1,100 residents
• $24M solid waste contract
• Cost Drivers Beyond Inflation
• Merchant fees
• 0.25 FTE Billing Account Rep
$9.2M, 23.8 FTE/LTE
2019-2020
Budget
6/8/2018
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Support Systems / Assets
Telemetry andSecurity Systems
$1.4M3.8 FTE/LTE
AssetReplacement
$2.9MFiscal
Management$1.7M
5.5 FTE/LTE
Computer andSystems Support
$2.9M5.5 FTE/LTE
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Systems Management
• SCADA
• Customer InformationSystem (CIS)
• Maximo
• GIS mapping
Asset Replacement
• Vactors, CCTV vans, vehicles
• Technology systems
Fiscal Management
• $316M Operating Budget
• $218M CIP
$8.9M, 14.8 FTE/LTE
2019-2020
Budget
Utilities Development Services
InformationDelivery$0.9M
3.5 FTE/LTE
PolicyImplementation
$0.5M1.6 FTE/LTE
ReviewServices$1.2M
4.6 FTE/LTE
InspectionServices$1.8M
5.3 FTE/LTE
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• Design review & constructioninspection for public utilitiesneeded for private & publicdevelopments
• Ensures compliance with local,state and federal regulations
• Codes, requirements, andengineering standards are met
• Quality utility infrastructure isbuilt to serve current and futurecustomers
• Cost Drivers Beyond Inflation
• Increased reviews andinspections due to developmentgrowth
$4.4M; 14.9 FTE/LTE
2019-2020
Budget
6/8/2018
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Engineering - System Planning
Asset Management$1.4M
5.0 FTE/LTE
Planning and SystemsAnalysis$2.8M
6.1 FTE/LTE
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Utility System Planning for our$3.5B utility infrastructure
• Utility System Plans – Water,Sewer, and Stormwater
• Asset Management Planning
• Infrastructure needs assessment
• O&M input
• Direct customer input
• Seismic vulnerability assessmentand mitigation planning
• Water Rights & Wells MasterPlan
• Stormwater Strategic Initiatives
• 7 – Year CIP Development
$4.2M, 11.1 FTE/LTE
2019-2020
Budget
Operations and Maintenance – Water
Mains andService
LineRepairs$3.6M10.7
FTE/LTE
DistributionSystem Preventive
Maint$1.8M
6.9 FTE/LTE
Pump Station, PRVand Resv Maint
$2.9M3.7 FTE/LTE
Meter Repair and Repl$0.9M
2.3 FTE/LTE
ServiceInstallation
andUpgrade
$0.6M1.0 FTE/LTE
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Water System
• 40,000 water connections
• 610 miles of water mains
• 24 reservoirs
• 22 pump stations
• 62 pressure zones
• 10,000 valves
• 5,800 fire hydrants
Cost Drivers Beyond Inflation
• CCUD reservoir coating - $750K
• Water service supplies
$9.8M, 24.5 FTE/LTE
2019-2020
Budget
6/8/2018
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Operations and Maintenance – Sewer
SewerMain
Repairs$2.2M
7.0 FTE/LTE
ConditionAssessment
$1.3M4.5 FTE/LTE
PreventiveMaintenance
$2.3M8.3 FTE/LTE
PumpStation
Maintenance$2.13M
6.0 FTE/LTE
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• Wastewater System
• 640 miles of pipe
• 46 pump & flush stations
• 14,000 maintenance holes
• 34 major connections to KingCounty system
• 19 miles of submergedlakelines
$7.9M, 25.7 FTE/LTE
2019-2020
Budget
Operations and Maintenance – Storm & SurfaceWater
Repair andInstallation
$2.1M4.7 FTE/LTE
Condition Assessment$0.8M
1.2 FTE/LTE
PreventiveMaintenance
$4.1M11.7 FTE/LTE
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• Storm and Surface Water System
• 20,000 public storm drains
• 400 miles of pipes
• 350 city-owned residential detentionfacilities
• 11 city-owned regional detentionfacilities
• 80 miles of open streams
• 864 acres of protected wetlands
• Regulatory Compliance (NPDES, ESA)
• Cost Drivers Beyond Inflation
• Increase inspection from 7 miles to20 miles per year
• Temp help/supply costs
$7.0M, 17.6 FTE/LTE
2019-2020
Budget
6/8/2018
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Regulatory
Water QualityRegulatoryCompliance
$1.7M3.3 FTE/LTE
PrivateUtility
SystemsMaint$1.4M
4.6 FTE/LTE
Utility Locates$0.8M
3.4 FTE/LTE
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• Federal and State regulations
• Safe Drinking Water Act
• NPDES Permit
• Clean Water Act
• Private System Maintenance
• Cross-Connection/Backflow
• Private Drainage Inspections
• Fats, Oils, Grease (FOG)
• Utility Locates (Call 811)
$3.9M, 11.3 FTE/LTE
2019-2020
Budget
Department Management• $1.7M, 4.0 FTE/LTE
• Departmental leadership• Strategic Planning
• Policy Implementation
• Industry Best Practices
• Stewardship of Resources
• Innovation & Process Improvements
• Workforce Development
• Regional Collaboration
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2019-2020
Budget
6/8/2018
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Proposed Utilities FTE/LTE Changes
FTEs LTEs Total
Authorized - 2018 173.75 2.00 175.75
Billing Account Rep 0.25 0.25
AMIImplementation SupportMeter Reader
6.002.00
6.002.00
Maint Worker (expires end of 2018) (1.00) (1.00)
Total Change 0.25 7.00 7.25
Requested - 2019-20 Budget 174.00 9.00 183.00
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FTE: Full Time Equivalent; LTE: Limited Term Employee
2019-2020
Budget
Next Steps
• June 21
• Rate Review & Discussion
• Commission’s budget proposal recommendation to Leadership Team
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2019-2020
Budget
6/8/2018
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Our Customers Expect High Quality Services
High customer service rating• 87% customer satisfaction
Solid financial management• High bond rating – Aa1• No debt
National standards of excellence• APWA Accreditation• AMWA Platinum Award• AMWA Sustainable Water Utility Management Award
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2019-2020
Budget